GLOBALIZATION and ECONOMIC DEVELOPMENT

1. GLOBALIZATIONandECONOMIC DEVELOPMENT DR. PETROS KOSMAS LECTURER VARNA FREE UNIVERSITY ACADEMIC YEAR 2010 - 2011 LECTURE 7 ECO-1010

2. Sustainable Development Sustainable development (SD) is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come. Ecologists have pointed to “The Limits to Growth”* and presented the alternative of a “steady state economy” in order to address environmental concerns. *The Limits to Growth is a 1972 book modeling the consequences of a rapidly growing world population and finite resource supplies, commissioned by the Club of Rome. ECO-1010

3. Sustainable development does not focus solely on environmental issues. In 1987, the United Nations released the Brundland Report, which defines sustainable development as “development which meets the needs of the present without compromising the ability of future generations to meet their own needs.” Scope and definitions ECO-1010

4. World Summit Outcome Document The United Nations 2005 World Summit Outcome Document refers to the "interdependent and mutually reinforcing pillars" of sustainable development as economic development, social development, and environmental protection. ECO-1010

5. Agenda 21 Agenda 21 is an action plan of the UN related to SD and was an outcome of the UN Conference on Environment and Development (UNCED) held in Rio de Janerio, Brazil, in 1992. It is a comprehensive blueprint of action to be taken globally, nationally and locally by organizations of the UN, governments, and major groups in every area in which humans directly affect the environment. There are 40 chapters in the Agenda 21, divided into four main sections. ECO-1010

6. Agenda 21 There are 40 chapters in the Agenda 21, divided into four main sections. Section I: Social and Economic Dimensions  which deals with combating poverty, changing consumption patterns, promoting health, change population and sustainable settlement Section II: Conservation and Management of Resources for Development Includes atmospheric protection, combating deforestation, protecting fragile environments, conservation of biological diversity (biodiversity), and control of pollution. ECO-1010

7. Agenda 21 Section III: Strengthening the Role of Major Groups  Includes the roles of children and youth, women, NGOs, local authorities, business and workers. Section IV: Means of Implementation  Implementation includes science, technology transfer, education, international institutions and financial mechanisms. ECO-1010

8. Agenda 21 The implementation of Agenda 21 was intended to involve action at international, national, regional and local levels. Some national and state governments have legislated or advised that local authorities take steps to implement the plan locally, as recommended in Chapter 28 of the document. Such programmes are often known as 'Local Agenda 21' or 'LA21' ECO-1010

9. The UN Division for Sustainable Development SD is an eclectic concept, as a wide array of views fall under its umbrella: The concept has included notions of weak sustainability, strong sustainability and deep ecology. Different conceptions also reveal a strong tension between ecocentrism and anthropocentrism. SD mantra enjoins current generations to take a systems approach to growth and development and to manage natural, produced, and social capital for the welfare of their own and future generations. ECO-1010

10. Sustainability Metrics and Indices Sustainable development indicators (SDI) have the potential to turn the generic concept of sustainability into action A) The "Daly Rules"  Renewable resources such as fish, soil, and groundwater must be used no faster than the rate at which they regenerate. Nonrenewable resources such as minerals and fossil fuels must be used no faster than renewable substitutes for them can be put into place. Pollution and wastes must be emitted no faster than natural systems can absorb them, recycle them, or render them harmless ECO-1010

11. B) The Natural Step/System Conditions of Sustainability In the natural step framework, a sustainable society is one which does not systematically increase concentrations of substances extracted from the Earth's crust, or substances produced by society; that does not degrade the environment and in which people have the capacity to meet their needs worldwide. Sustainability Metrics and Indices ECO-1010

12. C) Ecological Footprint Analysis Ecological Footprint  analysis, based on the biological concept of carrying capacity, is an estimate of the amount of land area a human population, given prevailing technology, would need if the current resource consumption and pollution by the population is matched by the sustainable (renewable) resource production and waste assimilation by such a land area.  Sustainability Metrics and Indices ECO-1010

13. D) Anthropologists Cultural Approach Though sustainable development has become a concept that biologists and ecologists have measured from an eco-system point of view and that the business community has measured from a perspective of energy and resource efficiencies and consumption, the discipline of anthropology is itself founded on the concept of sustainability of human groups within ecological systems. Sustainability Metrics and Indices ECO-1010

14. E) Global Reporting Initiative In 1997 the GRI was started as a multi-stakeholder process and independent institution whose mission has been "to develop and disseminate globally applicable Sustainability Reporting Guidelines". The GRI uses ecological footprint analysis and became independent in 2002. It is an official collaborating centre of the United Nations Environment Programme (UNEP) and during the tenure of Kofi Annan, it cooperated with the UN Secretary-General’s Global Compact. Sustainability Metrics and Indices ECO-1010

15. E) Energy, Emergy and Sustainability Index (SI)  In 1997, systems ecologists published their formulation of a quantitative sustainability index (SI) as a ratio of the emergy  (spelled with an "m", i.e. “embodied energy", not simply "energy") yield ratio (EYR) to the environmental loading ratio (ELR). Also called the sustainability index the "Emergy Sustainability Index" (ESI), "an index that accounts for yield, renewability, and environmental load. It is the incremental emergy yield compared to the environmental load". Sustainability Metrics and Indices ECO-1010

16. F) Life Cycle Assessment LCA is a "composite measure of sustainability." It analyses the environmental performance of products and services through all phases of their life cycle: extracting and processing raw materials; manufacturing, transportation and distribution; use, re-use, maintenance; recycling, and final disposal. Sustainability Metrics and Indices ECO-1010

17. F) The Stern Review on the Economics of Climate Change This report, on the economics of global climate change, estimated that 1% of GDP will now need to be invested to save 20% of GDP, because of failures to date by most global market sectors to integrate sustainability in the metrics they have governed with. Sustainability Metrics and Indices ECO-1010

18. F) Sustainable Livelihoods Approach Another application of the term sustainability has been in the Sustainable Livelihoods Approach. Key concepts include the Sustainable Livelihoods (SL) Framework, a holistic way of understanding livelihoods, the SL principles. A wide range of information resources on Sustainable Livelihoods Approaches can be found at Livelihoods http://www.livelihoods.org Sustainability Metrics and Indices ECO-1010

19. F) UN Food and Agriculture Organization (FAO) Types of Sustainability The FAO has identified considerations for technical cooperation that affect three types of sustainability: 1)Institutional sustainability. Can a strengthened institutional structure continue to deliver the results of technical cooperation to end users? Sustainability Metrics and Indices ECO-1010

20. F) UN Food and Agriculture Organization (FAO) Types of Sustainability The FAO has identified considerations for technical cooperation that affect three types of sustainability: 2) Economic and financial sustainability. Can the results of technical cooperation continue to yield an economic benefit after the technical cooperation is withdrawn?  Sustainability Metrics and Indices ECO-1010

21. F) UN Food and Agriculture Organization (FAO) Types of Sustainability The FAO has identified considerations for technical cooperation that affect three types of sustainability: 3) Ecological sustainability. Are the benefits to be generated by the technical cooperation likely to lead to a deterioration in the physical environment, thus indirectly contributing to a fall in production, or well-being of the groups targeted and their society? Sustainability Metrics and Indices ECO-1010

22. Environmental Sustainability ECO-1010

23. The notion of capital in Sustainable Development The sustainable development debate is based on the assumption that societies need to manage three types of capital (economic, social, and natural). Market failure If the degradation of natural and social capital has such important consequence the question arises why action is not taken more systematically to alleviate it. The business case for sustainable development The most broadly accepted criterion for corporate sustainability constitutes a firm’s efficient use of natural capital. ECO-1010

24. WHY Sustainability ? Continued population growth Continued pollution growth Failure of conventional regulations ECO-1010

25. World population is increasing to unprecedented levels ECO-1010

26. Population growth and poverty First Millennium - 25 million Second Millennium - 6.1 billion Forecast to reach 9.3 billion by 2050!!!!!!! • 1.2 billon people live below the poverty line on less than one dollar a day. • Almost 3 billion - or nearly half the world's people - survive on less than 2 dollars a day. ECO-1010

27. Life Expectancy at Birth Human Development Index 2003 ECO-1010

28. At the same time, millions of people worldwide are struggling to meet their basic needs. • 1.3 billion people live in absolute poverty, with incomes less than $1/day (World Bank) • 841 million people in developing countries suffer from basic protein-energy malnutrition (UN Food and Agriculture Organization) • Nearly 1 billion people either cannot work or are employed in jobs where they cannot support their family (International Labor Organization) Distribution of Total World Income Richest Fifth 82.7% 11.7% 2.3% 1.9% Poorest Fifth 1.4% (UNDP, Human Development Report 1992) ECO-1010